Assignment of Oil and Gas Lease
This Assignment of Oil and Gas Lease can be used by companies/individual to whom
rights are transferred for the use of oil and gas with regards to the leased property.
The Assignee acquires the same rights and privileges as the Assignor. The Assignor
remains liable unless released by the landlord.
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Attorney Drafted
ASSIGNMENT OF OIL AND GAS LEASE
This Assignment is made and entered into this ______ [Month] ____[ Date], 20___, which shall also be
the effective date of this agreement, for all purposes, by and between _____________________
[Instruction: Insert the name of individual/company], (hereinafter referred to as the
“Assignor”), having principle place of business at _____________________ [Instruction: Insert the
address of individual/company] and _____________________ [Instruction: Insert the name of
individual/company],( hereinafter referred to as “Assignee”), having principle place of business
at _____________________ [Instruction: Insert the address of individual/company], individually
termed as “Party” and collectively termed as “Parties” agree that:
Identity of Lease
WHEREAS, Assignor is Lessee under an Oil and Gas Lease executed on ______ [Month] ____ [Date],
20___, by Assignor as Lessee and ___________________________ [Instruction: Insert the name or names
of the actual owner/lessor of the property], covering the real property in the County of
___________, [Instruction: Insert the County] Florida described as follows (herein after termed as
the “Assigned Premises”):
__________________________________________________________________________________________________________________
__________________________________________________________________________________________________________________
______[Instructions: Insert legal description of real property]; and
WHEREAS, that lease is duly recorded in Book ___________, [Instruction: Insert the book name] at
Page ___________ [Instruction: Insert the page number] of the official records of the county of
__________, [Instruction: Insert the County] Florida.
Assignment
NOW, THEREFORE, in consideration for the sum of ________ ($___) [Instruction: Insert the sum
E.g., Fifty thousand dollars only ($ 50,000)]( hereinafter termed as the “Assignment Price”)
and other good and valuable consideration, receipt of which is hereby acknowledged, Assignor
does hereby assign and transfer to the Assignee all of Assignor's right and interest in the lease
and the real property covered by the Lease, on the following terms and conditions:
1. Override Royalty:
a) There is excepted from the above assignment reserved and retained in Assignor an overriding
royalty equal to ______ (__ %) [Six percent (6%)] [Instruction: Insert the fraction or
percentage of royalty] of the value of all oil, gas or associated liquid or gaseous hydrocarbons
produced and saved from or attributable to each of the tracts comprising the land covered by the
Assigned Premises and removed under the lease and the net proceeds received by Assignee from
the sale of all gas and casing head gasoline produced and sold under the lease. Assignee agrees
that all overriding royalties paid to Assignor hereunder shall be without deduction for the cost of
producing, gathering, storing, separating, treating, dehydrating, compressing, processing and
otherwise making the oil, gas and other products produced hereunder ready for sale or use and
transporting production on the Assigned Premises or to a commingled facility in the Assigned
Premises.
b) The overriding royalty reserved and retained by Assignor shall be payable to Assignor at the same
time, and shall be computed in the same manner, as is provided in the lease for the payment, and
computation, of royalties payable under it to Lessor.
2. Assignee to Perform Lease: Assignee accepts, on the terms and conditions specified in this
document, this assignment of lease and agrees to truly and fully perform all of the terms and
conditions of the lease to be performed under the lease by Lessee.
3. Indemnity Agreement: Assignee shall indemnify and hold Assignor and the property of Assignor,
including Assignor's interest under this instrument, free and harmless from all claims, liability, loss,
damage, or expense resulting from Assignee's performance of the lease, Assignee's occupation of any
part of the real property covered by the lease, or the exploration for, or extraction by Assignee under
the lease, of any oil, gas, or other hydrocarbon substances.
4. Modification and Extension of Lease: Assignee shall have the right to obtain from Lessor under the
lease, or Lessor's successor in interest as Lessor under the lease, any modifications or extensions of
the lease Assignee may desire, as long as the modifications or extensions do not reduce in any way
the overriding royalty reserved and retained by Assignor under this instrument or otherwise infringe
on any rights of Assignor under this instrument.
5. Development Clause: Unless Assignee has, on or before ______ [Month] ____[ Date], 20___,
either commenced drilling operations on the land covered by the lease or reassigned its rights under
the lease to Assignor, Assignee shall pay or tender to Assignor in advance on the first day of every
month a monthly rental of ________ ($___) [Fifty dollars only ($50)] [Instruction: Insert the
monthly rental amount E.g., Fifty dollars only ($ 50)] until drilling operations are commenced by
Assignee on the land covered by the lease or Assignee's rights in the lease are reassigned by Assignee
to Assignor. Provided, however, that no payments made pursuant to this paragraph shall in any way
extend the period within which Assignee must commence drilling operations on the land covered by
the lease beyond one year from the date of this instrument. Provided, further, any amounts payable
under the lease to Lessor as deferred rentals until drilling operations are actually commenced on the
land covered by the lease shall, for a period not exceeding one year from the date of this instrument,
be paid by Assignor from the rental payable to Assignor by Assignee pursuant to this paragraph.
6. Access to Wells: Assignor shall have access to any well drilled by Assignee on the land covered by
the lease and shall have the privilege of witnessing all tests and operations conducted on or in
connection with any such well. On written request of Assignor, Assignee agrees to furnish Assignor
with copies of logs and reports obtained or prepared in connection with any well drilled on the land
covered by the lease.
7. Assignor's Warranties: Assignor makes no warranty of title with respect to the land covered by the
lease, but Assignor does warrant and represent to Assignee that:
a) The rights and interests assigned and transferred to Assignee by this instrument are free and clear
of all liens, charges, and encumbrances created by Assignor;
b) Assignor has the right to make the assignment and transfer effectuated by this instrument;
c) No default or defaults now exist or have been declared under the lease; and
d) The lease is now in good standing and in full force and effect.
8. Manner of Payments to Assignor: All moneys payable under this agreement by Assignee to
Assignor shall be deemed duly paid when a check for them payable to the order of Assignor is
deposited in the United States mail, first-class postage prepaid, addressed to Assignor at its
depository, the _______________ [Instruction: Insert the name of the bank] _____________
[Instruction: Insert the name of street] Florida. Assignor may from time to time change
depositories for the purpose of this paragraph by giving written notice of the change and the name
and address of the new depository to Assignee in the manner prescribed by Paragraph 9 of this
instrument.
9. Notices: All notices or other communications required or permitted by this instrument, the lease, or
by law to be served on or given to either Party to this agreement, Assignor or Assignee, by the other
party shall be in writing and shall be deemed duly served when personally delivered to the party to
whom it is directed or when deposited in the United States mail, first-class postage prepaid, addressed
to Assignor or to Assignee. Either Party, Assignor or Assignee, may change its address for the
purpose of this paragraph by giving written notice of _______ days (___days) [Ten days (10 days)]
[◊ Instruction: Insert number of days E.g., Ten days (10 days)] to the other Party in the manner
provided in this paragraph.
10. Attorney's Fees: Should any litigation be commenced between the Parties to this instrument
concerning the assignment and transfer made by it, the lease, or the rights or duties of either Party in
relation to the lease or to this instrument, the Party, Assignor or Assignee, prevailing in that litigation
shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as attorney's
fees in the litigation, which shall be determined by the court in the litigation or in a separate action
brought for that purpose.
11. Binding on Heirs: All of the terms and provisions of this instrument shall inure to the benefit of and
shall be binding on the heirs, executors, administrators, representatives, successors, and assigns of
each of the Parties to this agreement.
12. Sole and Only Agreement: This instrument constitutes the sole and only agreement between
Assignor and Assignee respecting the lease or the assignment of the lease by Assignor to Assignee,
and correctly sets forth the obligations of Assignor and Assignee to each other as of its date. Any
agreements or representations respecting the lease or its assignment to Assignee not expressly set
forth in this instrument are null and void.
This Assignment is made by Assignor and accepted by Assignee subject to the terms and conditions
of all existing agreements and contracts affecting the Assigned Premises. This Assignment is made
without warranty of title, express or implied, except as to those encumbrances made by, through or
under the Assignor.
IN WITNESS WHEREOF, this instrument is executed as of the date first above written.
__________________________________ ________________________________
[Instruction: Insert signature of Assignor] [Instruction: Insert signature of
Assignee]
_____________________________ __________________________________
[Instruction: Insert witness of Assignor] [Instruction: Insert witness of Assignee]
ACKNOWLEDGMENT
This instrument was acknowledged before me on ______ [Month] ____[ Date], 20___, by
_________________________________________________________________________.
Notary Public, State of Florida.
______________________________________
[Instruction: Insert Notary's typed or printed name]
Notary's commission expires: ______ [Month] ____ [Date], 20___.
[Instruction: Insert the date of expiry of Notary's Commission]
Note: Carefully read and follow the Instructions and Comments contained in this document for
your customization to suit your specific circumstances and requirements. You will want to
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